Oil stock dividends look 'very safe,' analyst says

Chevron better than Exxon: Pro

One aspect of oil investing looks "very safe" despite crude price volatility, an analyst said Thursday.

Big oil companies like Chevron and Exxon Mobil issue dividends that make them steady investments amid the sector's uncertainty, said Jason Gammel, an equities analyst at Jefferies.

"It's the safety of the dividend that's the most important and I believe these dividends are very safe indeed," he noted in an interview on CNBC's "Power Lunch."

Getty Images

Chevron and Exxon Mobil have both slipped more than 10 percent lower in the last year. West Texas Intermediate crude oil prices dropped 35 percent in that span.

Read MoreTraders see crude oil going to $65—but not higher

Gammel noted he has seen "a lot of volatility related to the oil price." Still, with Chevron's quarterly dividend at $1.07 per share and Exxon Mobil planning to increase its dividend to 73 cents per share, investors will still see returns on the stocks, he contended.

Jefferies has a "buy" rating on Chevron and a "hold" rating on Exxon. Gammel said he sees stronger production growth for Chevron than Exxon Mobil.

Chevron and Exxon Mobil were both down slightly in late trading Thursday.